‘Dumb’: Canada, Mexico blast historic Trump tariffs, threaten retaliation

‘Dumb’: Canada, Mexico blast historic Trump tariffs, threaten retaliation
‘Dumb’: Canada, Mexico blast historic Trump tariffs, threaten retaliation
Kena Betancur/VIEWpress

(WASHINGTON) — America’s closest neighbors, Canada and Mexico, excoriated President Donald Trump for slapping historic tariffs on goods from their countries.

Trump’s broad tariffs went into effect on Tuesday, along with increased duties on goods from China, a move that prompted a swift retaliation from Beijing.

“President Trump continues to demonstrate his commitment to ensuring U.S. trade policy serves the national interest,” the White House said in a statement.

Goods entering the U.S. from Mexico and Canada will carry a 25% tariff, while those from China will be subject to a 10% increase on existing tariffs, according to the White House.

U.S. tariffs are at their highest level since 1943, Yale’s Budget Lab said.

On Feb. 27, Trump alleged that illicit drugs such as fentanyl had continued to enter the U.S. through Mexico and Canada despite agreements reached last month to address the issue.

Since September, nearly all fentanyl seized by the U.S. came through the Southern border with Mexico, according to the U.S. Customs and Border Patrol, or CBP, a federal agency. Less than 1% of fentanyl was seized at the Northern border with Canada, CBP found.

Canadian Prime Minister Justin Trudeau sharply criticized the tariffs, calling them a “dumb” policy that does not “make sense.”

The reason for the tariffs is based on a false allegation about Canada as a major source of drugs entering the U.S., Trudeau added.

“It’s an example of [Trump] not really being able to see what it is that he wants, because even the excuse that he’s giving for these tariffs today of fentanyl is completely bogus, completely unjustified [and] completely false,” Trudeau said.

In response, Canada slapped a 25% retaliatory tariff on $30 billion worth of goods. Tariffs on an additional $125 billion worth of products will take effect in 21 says, Trudeau said.

“We will not back down from a fight,” Trudeau added.

Meanwhile, Mexican President Claudia Sheinbaum announced plans to impose retaliatory tariffs on U.S. goods.

“There is no motive or reason, nor justification that supports this decision that will affect our people and our nations,” Sheinbaum said. “We have said it in different ways: cooperation and coordination, yes; subordination and interventionism, no.”

Sheinbaum said she will speak over the phone with Trump on Thursday, and if no deal can be reached, she’ll announce the tariff and non-tariff measures at a rally on Sunday.

China’s response

Within minutes of the new U.S. tariffs taking effect, China unveiled on Tuesday its initial response by placing additional 10% to 15% tariffs on imported U.S. goods, like chicken, wheat, soybeans and beef.

Those duties will be on top of similar tariffs imposed back during the first Trump administration’s trade war in 2018. Some of those tariffs are already at 25%, though Beijing issued some waivers as a result of the 2020 “phase one” trade deal.

The new Chinese tariffs are set to come into effect for goods shipped out next Monday, March 10.

Stock prices plummet

Stock futures for the three major U.S. indexes were close to flat early Tuesday following the selloff on Monday as Trump announced his proposed tariffs would go into effect at 12:01 a.m.

Stock prices plummet

Stock futures for the three major U.S. indexes were close to flat early Tuesday following the selloff on Monday as Trump announced his proposed tariffs would go into effect at 12:01 a.m.

Asian markets were mixed on Tuesday. The Shanghai Stock Exchange climbed less than a percentage point, while the Nikkei in Japan slipped about 1.2% and the Hang Seng in Hong Kong closed down about 0.3%.

European markets mostly traded off on Tuesday, with the DAX in Germany down about 1.6% and the FTSE 100 slipping about 0.3% midday.

The U.S. tariffs arrived about a month after Trump granted Mexico and Canada a reprieve, having reached agreements with the two countries regarding border security and drug trafficking.

ABC News’ Zunaira Zaki and Anne Laurent contributed to this report.

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Stocks fall in early trading Tuesday as tariffs take effect

Stocks fall in early trading Tuesday as tariffs take effect
Stocks fall in early trading Tuesday as tariffs take effect
lvcandy/Getty Images

(NEW YORK) — The stock market fell in early trading on Tuesday, just hours after the Trump administration’s long-promised tariffs took effect.

The Dow Jones Industrial Average dropped nearly 800 points, or 1.8%; while the S&P 500 also fell 1.8%. The tech-heavy Nasdaq tumbled 1.6%.

The policy taxes imports from Mexico, Canada and China — the three largest trading partners of the United States — meaning that it could raise prices for everything from gasoline to avocados to iPhones.

Shares of retail giant Target fell 4.5% in early trading on Tuesday, following an earnings release from the company that cited “tariff uncertainty” as a potential impediment for the business. Walmart’s stock price dipped 1% on Tuesday, while Amazon shares fell 2%.

Shares of Best Buy plummeted more than 13% on Tuesday morning. The sharp drop came hours after Best Buy CEO told analysts that price increases are “highly likely” as a result of the tariffs.

Higher costs for car production could also pose a challenge for U.S. automakers, many of which depend on a supply chain closely intertwined with Mexico and Canada.

Shares of Ford tumbled 3% on Tuesday, while General Motors dropped more than 4%. Stellantis — the parent company of Jeep and Chrysler — saw shares plummet more than 7%.

Tesla, the electric carmaker led by Elon Musk, saw its stock price drop nearly 7%.

The far-reaching losses extend a market slide that began on Monday afternoon when Trump affirmed plans to impose a fresh round of tariffs.

Trump stuck to a March 4 start date for 25% tariffs on imports from Mexico and Canada, as well as 10% tariff on Chinese goods — which, as of Tuesday, rises to 20%, per an amended executive order.

Tariffs of this magnitude would likely increase prices paid by U.S. shoppers, since importers typically pass along a share of the cost of those higher taxes to consumers, experts said. The duties also raise input costs for manufacturers that import raw materials.

In addition to Tesla and Amazon, the tariffs appeared to impact some of the other so-called “Magnificent Seven,” a group of large tech firms that helped drive stock market gains in recent years.

Chipmaker Nvidia, which relies on semiconductors from Taiwan but also imports some materials from Mexico, saw shares drop more than 2%.

Meta, the parent company of Facebook and Instagram, suffered a 4% drop in its stock price. Microsoft’s stock fell 1%.

Shares of Alphabet and Google defied the trend, however, remaining essentially unchanged in early trading on Tuesday.

This is a developing story. Please check back for updates.

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Woman bitten by alligator in Florida

Woman bitten by alligator in Florida
Woman bitten by alligator in Florida
Lea McQuillan / 500px/Getty Images

(ORLANDO, Fla.) — The woman was paddling at Tiger Creek Preserve in Polk County at the time of the incident on Monday, the Florida Fish and Wildlife Conservation Commission said.

She was taken to a hospital in unknown condition to be treated for her injuries, the agency said.

A trapper was sent to the scene to remove the alligator, the commission said. The preserve is about 65 miles south of Orlando.

The commission said serious injuries from alligators are rare in Florida.

To stay safe from alligators, the agency recommends swimming only in designated areas during the day and keeping pets on a leash and away from the edge of water.
 

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Major cross-country storm moves east, bringing severe thunderstorms to the South on Mardi Gras Day

Major cross-country storm moves east, bringing severe thunderstorms to the South on Mardi Gras Day
Major cross-country storm moves east, bringing severe thunderstorms to the South on Mardi Gras Day
ABC News

(NEW YORK) — A major cross-country storm is moving east, bringing severe thunderstorms to the South on Mardi Gras Day before heading to the East Coast on Wednesday.

More than 400,000 customers lost power in Texas on Tuesday morning.

Damage was reported in Irving, Texas, near Dallas, and winds gusted to 62 mph near Abilene, Texas, as the storm blew through in the morning.

In Oklahoma, residents woke up to a tornado, wind gusts over 80 mph and flash flooding.

Now, the storm moves east, with a severe thunderstorm watch in effect for Missouri, Arkansas and Oklahoma until 11 a.m. local time. A tornado watch extends south through Arkansas, northern Louisiana and eastern Texas though 3 p.m. local time.

On Tuesday afternoon, the severe thunderstorms will reach Jackson, Mississippi, and New Orleans as Mardi Gras celebrations culminate in a final day of festivities on Fat Tuesday. Parades in the area have been canceled or moved earlier due to the weather.

Tornadoes and damaging winds will be the biggest threat, but flash flooding is also possible.

The thunderstorms will hit Alabama after 8 p.m. and then Atlanta overnight.

By Wednesday, the storm system will move to the East Coast, bringing heavy rain and damaging winds from Georgia to New York.

Tornadoes are possible in the Carolinas and southern Virginia.

Meanwhile, a blizzard warning is in effect for six states from Colorado to Minnesota, where a combination of snow and gusty winds could create dangerous whiteout conditions on the roads.

A winter storm warning was issued for Wisconsin and Michigan, where some areas could see up to 1 to 2 feet of snow from Tuesday through Wednesday evening.

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Spring break travel forecast: What you need to know

Spring break travel forecast: What you need to know
Spring break travel forecast: What you need to know
Dougal Waters/Getty Images

(NEW YORK) — Families are gearing up for spring break travel, with 173 million Americans expected to take to the skies in March and April.

Whether you’re packing for a relaxing beach vacation or preparing to explore a new city, here’s what you need to know before heading to the airport:

U.S. airlines expect to carry 173 million passengers from March 1 to April 30 — up 4% from the same time last year, according to Airlines for America.

Airfare for March and April is up compared to last year. The average price per ticket is now $280, which is a 4% increase from the same time last year, according to Hopper.

The cheapest day of the week to fly for both domestic and international travel is Tuesday, according to Expedia. Passengers who fly on Tuesday instead of Saturday and Sunday can save about 15% on average.

The first two weekends of March are the cheapest travel weekends this spring, according to Hopper.

The busiest and most expensive time to fly in the U.S. will be the week of Wednesday, April 2, according to Expedia.

Southwest Airlines said it’s expecting to fly more than 8.2 million passengers between March 8 and March 23. Southwest predicts March 20 will be its busiest day in that time period.

The top destination in the U.S. is Orlando, Florida, followed by Las Vegas, Miami, Los Angeles and New York, according to Expedia.

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During immigration raid, DHS Secretary Noem says ICE bringing ‘consequences’

During immigration raid, DHS Secretary Noem says ICE bringing ‘consequences’
During immigration raid, DHS Secretary Noem says ICE bringing ‘consequences’
Department of Homeland Security Secretary Kristi Noem speaks with ABC News Senior Political Correspondent Rachel Scott during an ICE raid in Virginia on March 4, 2025. (ABC News)

(RICHMOND, VA) — Secretary of Homeland Security Kristi Noem said U.S. Immigration and Customs Enforcement is bringing “consequences” during raids in Virginia on Tuesday.

“There is consequences,” said Noem, who was present during the pre-operation debrief. The raids were assisted by the FBI, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

ABC News Senior Political Correspondent Rachel Scott covered the raids at the scene. The second operation saw agents detain a man who officials said had been convicted of sexual battery. The man, they said, had been deported twice and re-entered the country illegally.

Two minors and an uncle were also present in the raided residence, officials said. Agents said the uncle is undocumented and told him to turn himself into immigration authorities in two days.

Asked what would happen to the two minors, Noem told ABC News, “We don’t know what other family members they have, that’s why he has two days to go locate them and make sure these kids are with someone in their family that they believe will keep them safe and set a better example for them.”

Pushed on the likelihood of the family being separated, Noem said there are “consequences,” adding, “And we are giving him time to leave these children with someone else.”

This is a developing story. Please check back for updates.

 

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Trump to address Congress and nation as he tests limits of presidential power

Trump to address Congress and nation as he tests limits of presidential power
Trump to address Congress and nation as he tests limits of presidential power
Pete Kiehart for The Washington Post via Getty Images

(WASHINGTON) — Donald Trump, six weeks into a historic comeback to the White House, on Tuesday heads to Capitol Hill to address Congress and the nation as a reinvented president relentlessly testing the limits of executive power.

Trump will step up to the dais at 9 p.m. ET to lay out his goals for the next four years and tout the actions he’s taken so far, many of them challenging constitutional restraints on his authority versus Congress and the courts.

The president teased on Monday it would be a “big night” and House Speaker Mike Johnson told Fox News over the weekend to expect “fireworks.”

The theme of his address will be the “Renewal of the American Dream,” a White House official told ABC News.

Trump will focus, the official said, on his record thus far, the economy, border security, and what the official called the president’s plans for “peace around the globe.”

He will push Congress to pass more border security funding for deportations and the border wall, the official said, and on foreign policy, he’s expected to touch on his efforts to help broker a peace deal between Ukraine and Russia.

“President Trump has accomplished more in one month than any president in four years – and the renewal of the American Dream is well underway,” White House press secretary Karoline Leavitt said in a statement. “In his Joint Address to Congress, President Trump will celebrate his extraordinarily successful first month in office while outlining his bold, ambitious, and common sense vision for the future. President Trump’s Joint Address will be MUST-SEE TV.”

The speech comes as Trump moves with lightning speed to enact his agenda, including an immigration crackdown and radical overhaul of the federal government — the latter with the help of his unelected enforcer Elon Musk, who will be in the House chamber looking on.

As some of the dust settles from that blitz, a 538 analysis of public opinion polls found Trump himself to be more popular than many of his administration’s policies. And his approval rating, while higher than at this same point in his first term, is still underwater at 45%, according to Gallup.

Promises kept?

Trump has signed 76 executive orders since his inauguration, according to the Federal Register.

Barbara Perry, co-chair of the Presidential Oral History Program at the University of Virginia’s Miller Center, said she expects Trump’s speech to start off on the theme of “promises made, promises kept.”

“I suspect there will be some chest-pounding and drawing attention to the fact that historically, this is one of the most active and productive first 100 days and we’re not even at the 100-day mark yet,” Perry said. “They’re off the blocks really quickly.”

His executive actions include many of the culture war issues he campaigned on — such as ending federal DEI programs, making English the country’s official language, declaring the government will only recognize a person’s sex assigned at birth and banning transgender athletes from participating in women’s sports.

On immigration, Trump could promote border crossings dropping significantly in January and the Department of Homeland Security arresting thousands of migrants illegally in the country. But his “border czar,” Tom Homan, has expressed frustration with the pace of deportations so far, and the administration abruptly cleared migrants from Guantanamo Bay after pledging to use the military base to house the “worst of the worst.” Trump’s effort to end birthright citizenship, another signature 2024 pledge, has been temporarily blocked by the courts.

On foreign policy, in addition to his efforts to start peace talks to end the Russia-Ukraine war, the White House official said he can be expected to talk about the Middle East, although his brazen Gaza takeover plan has little public buy-in from regional power players and the administration’s reversal of American policy toward Russia and away from Ukraine has prompted concern among European allies.

On the economy, Trump can be expected to highlight tariffs he’simposed against Canada and Mexico that went into place on Tuesday, as well as additional taxes against China. But inflation continues to be a persistent problem, with some economists predicting tariffs could raise prices more, and the cost of eggs have skyrocketed amid the prevalence of avian flu.

But the Trump initiative that’s been the most controversial is the slashing of the federal bureaucracy, which is being largely overseen by Musk’s Department of Government Efficiency. The dismantling of agencies like USAID, wholesale firings of federal workers and cutting of funds already appropriated by Congress is prompting widespread confusion and several legal challenges. Trump has defended Musk so far, including in his first Cabinet meeting last week where Musk spoke despite not being a Cabinet member.

His message to Congress?

Trump will address Congress as Republicans hold majorities in both the House and Senate. Despite the trifecta, Trump is pushing an expansive view of executive power that questions the role of Congress and the courts to serve as a check over federal agencies.

How aggressively he articulates that stance in front of the lawmakers and Supreme Court justices in attendance will be something to watch, said Philip Wallach, a senior fellow at the conservative American Enterprise Institute.

“I think the big question is, what does he feel like he needs from Congress? The general sense of the second Trump administration has been to come out of the gates guns blaring, wanting to accomplish everything themselves,” Wallach said. “In some ways, it seems like they mostly want Congress to stay out of their way and to cheer them on in their effort to transform the government.”

“But it’s not clear just how far they can go without new laws from Congress, including some that go ahead and dismantle previous programs,” Wallach noted.

The first big legislative test will be the budget reconciliation bill that will fund much of Trump’s agenda, though more pressing will be averting a government shutdown next week.

Back in 2017, during his first-ever joint address to Congress, Trump made a pitch for unity. It was generally regarded as one of his best political speeches, said University of Michigan speech and debate expert Aaron Kall.

Kall doesn’t expect the same tone for Tuesday night’s address, contending Trump views himself as having a “mandate” from voters after winning both the electoral college and popular vote (though data shows the victory isn’t the total landslide Trump has often portrayed it as).

“I think it will be very totalizing, very self-assured and very partisan in tone,” Kall said of Trump’s upcoming address. “This will be more in the ilk of a campaign speech.”

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Trump tariffs go into effect against Canada, Mexico; China retaliates

‘Dumb’: Canada, Mexico blast historic Trump tariffs, threaten retaliation
‘Dumb’: Canada, Mexico blast historic Trump tariffs, threaten retaliation
Kena Betancur/VIEWpress

(WASHINGTON) — President Donald Trump’s broad tariffs on imported goods from Mexico and Canada went into effect on Tuesday, along with increased duties on goods from China, a move that prompted a swift retaliation from Beijing.

“President Trump continues to demonstrate his commitment to ensuring U.S. trade policy serves the national interest,” the White House said in a statement.

Goods entering the U.S. from Mexico and Canada will carry a 25% tariff, while those from China will be subject to a 10% increase on existing tariffs, according to the White House.

Within minutes of the new U.S. tariffs taking effect, China unveiled on Tuesday its initial response by placing additional 10% to 15% tariffs on imported U.S. goods, like chicken, wheat, soybeans and beef.

Those duties will be on top of similar tariffs imposed back during the first Trump administration’s trade war in 2018. Some of those tariffs are already at 25%, though Beijing issued some waivers as a result of the 2020 “phase one” trade deal.

The new Chinese tariffs are set to come into effect for goods shipped out next Monday, March 10.

Canadian Prime Minister Justin Trudeau also promised to impose tariffs on American goods if Trump’s tariffs on Canadian goods went into effect.

He said in a statement on Monday that Ottawa would start with “tariffs on $30 billion worth of goods immediately and tariffs on the remaining $125 billion on American products in 21 days’ time.”

“Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” Trudeau said in the statement.

Stock futures for the three major U.S. indexes were close to flat early Tuesday following the selloff on Monday as Trump announced his proposed tariffs would go into effect at 12:01 a.m.

The announcement sent major stock indexes plummeting, with the S&P suffered its biggest loss since December, closing at 5,849.72 — down 104.78 points or 1.76%. The Dow Jones Industrial Average closed at 43,191.24 down 649.67 points — or 1.48% — while the tech-heavy Nasdaq fell 2.64%.

Asian markets were mixed on Tuesday. The Shanghai Stock Exchange climbed less than a percentage point, while the Nikkei in Japan slipped about 1.2% and the Hang Seng in Hong Kong closed down about 0.3%.

European markets mostly traded off on Tuesday, with the DAX in Germany down about 1.6% and the FTSE 100 slipping about 0.3% midday.

The U.S. tariffs arrived about a month after Trump granted Mexico and Canada a reprieve, having reached agreements with the two countries regarding border security and drug trafficking.

ABC News’ Max Zahn contributed to this report.

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The impact ‘shocking’ halt on US aid to Ukraine could have on war

The impact ‘shocking’ halt on US aid to Ukraine could have on war
The impact ‘shocking’ halt on US aid to Ukraine could have on war
Roman Chop/Global Images Ukraine via Getty Images

(LONDON) — President Donald Trump directed his administration to “pause” all military aid to Ukraine, two White House officials told ABC News on Monday, following last week’s combative Oval Office meeting with Ukrainian President Volodymyr Zelenskyy and with Trump pressuring Kyiv into accepting a peace deal to end Russia’s invasion of the country.

The freeze in American aid poses a severe strategic problem for Ukraine, which has become reliant on military and economic support from its Western partners as it tries to repel Russia’s three-year-old invasion and stave off President Vladimir Putin’s push for a peace deal beneficial to Moscow. Experts say that Ukraine and its European partners now produce most of the weaponry destined for the battlefield. But there are crucial American systems that Kyiv will struggle to replace.

“It’s shocking,” Oleksandr Merezhko, a member of the Ukrainian parliament and the chair of the body’s foreign affairs committee, told ABC News. “Until the last moment I hoped that Trump wouldn’t do it because he wants to be popular and such a move would definitely cause a backlash.”

“Trump is helping Putin to kill Ukrainians,” he added.

A White House official told ABC News that Trump has been clear that he is focused on peace. “We need our partners to be committed to that goal as well,” they said. “We are pausing and reviewing our aid to ensure that it is contributing to a solution.”

“It looks like Trump is trying to make a deal with Russia over the heads of Ukraine and Europe at the cost of Ukraine,” Merezhko said. “He doesn’t apply leverage over the aggressor but is trying to force the victim, the weaker party, to accept demands of the aggressor.”

“If Trump has a different plan in mind he should have at least talked to Zelenskyy about it behind closed doors, which never happened,” the lawmaker said.

Fellow member of parliament Oleksiy Goncharenko told Sky News that “thousands of people will die” due to the “catastrophic” decision.

Allied leaders and officials — already mobilizing to provide more aid and political backing for Ukraine in response to the Trump administration’s skepticism — also expressed concern over the White House decision.

“We need the Americans militarily,” Finnish Foreign Minister Elina Valtonen said during a Chatham House think tank event in London on Tuesday when asked about the aid pause. “On the battlefield, Russia has not really been advancing in recent months,” she added. “This definitely shouldn’t be a moment where we give in.”

Benjamin Haddad, The French minister delegate for Europe, said the pause to U.S. aid “means moving peace further away.” He added, “To end the war, pressure must be put on the aggressor, Russia,” suggesting European nations must now mobilize to fill the gap left by the U.S.

In Russia, meanwhile, Kremlin spokesperson Dmitry Peskov told journalists, “It is obvious that the U.S. has been the main supplier of this war so far,” as quoted by the state-run Tass news agency. “If the U.S. stops being one or suspends supplies, this will probably be the best contribution to the cause of peace,” Peskov said.

Two officials familiar with the matter told ABC News that around 90% of the military equipment committed to Ukraine by past Presidential Drawdown Authority packages have already been delivered to the country.

That includes the vast majority of critical munitions and anti-armor systems — such as Javelin anti-tank weapons — they said, adding that most of what is still in the pipeline are armored vehicles that take longer to refurbish. Those were expected to be ready for delivery in the coming months, with all PDA equipment previously on track for delivery by August 2025.

A steady flow of arms is still set to move from the U.S. to Ukraine for at least the next several years thanks to contracts Kyiv signed with private American companies for newly produced weapons.

Many — if not most — of those contracts have been paid. The Trump administration could still attempt to disrupt those shipments through the use of emergency authorities, but there is currently no indication it is trying to do so.

Exactly what equipment earmarked for Ukraine will now be frozen in place is not clear.

Among former President Joe Biden’s final four PDA packages announced in December and January — collectively worth some $3 billion — were missiles and support equipment for Ukraine’s U.S.-made F-16 fighter jets, rockets for use by American-made HIMARS systems, artillery munitions and surface-to-air missiles for Ukrainian air defense batteries.

Malcolm Chalmers, the deputy director-general of the Royal United Services Institute think tank in the U.K., told ABC News that recent estimates indicate the U.S. share of all military hardware sent to the front has fallen to around 20%, with 25% coming from Europe and 55% domestically produced in Ukraine.

But the 20% accounted for by the U.S. “is the most lethal and important,” Chalmers said. “Ukraine will not collapse — they already experienced an aid cutoff last year. But the effect will be cumulative.”

The Washington-based Institute for the Study of War suggested that the suspension of U.S. aid will encourage Putin “to continue to increase his demands and fuel his conviction that he can achieve total victory through war.”

Mykola Bieleskov, an analyst at Ukraine’s National Institute for Strategic Studies, told ABC News that Ukraine can keep fighting at the current tempo for six months to a year while Europe and Kyiv try to ramp up production to fill the gap.

A member of Ukraine’s parliamentary defense committee, Fedir Venislavskyi, told Ukrainian media that Kyiv has a resilience reserve of about six months — even without systematic support from the U.S.

Still, Venislavskyi said the situation will be complicated by any freeze in U.S. aid, adding that work is currently underway to find alternative sources of supply for critically important weaponry.

ABC News’ Rachel Scott, Michelle Stoddart, Shannon Kingston and Luis Martinez contributed to this report.

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Mexico, US gunmakers face off in historic Supreme Court case

Mexico, US gunmakers face off in historic Supreme Court case
Mexico, US gunmakers face off in historic Supreme Court case
Leonardo Montecillo/Agencia Press South/Getty Images

(MEXICO CITY) — There is only one gun store in the entire country of Mexico, yet America’s southern neighbor is awash in violent crimes perpetrated with millions of firearms made in the United States.

In a historic case on Tuesday, the Supreme Court will consider whether American gun manufacturers, including Smith & Wesson, Glock, Beretta and Colt, can be held liable for allegedly “aiding and abetting” the illicit flow of weapons across the border.

The high court has never before taken up the issue of the sweeping gunmaker immunity found in a 2005 federal law aimed at protecting the industry. Its decision could have a significant impact on firearm companies and the victims of gun violence pursuing accountability.

The government of Mexico is seeking $10 billion in damages and court-mandated safety mechanisms and sales restrictions for U.S.-made guns. The justices will decide whether the case can move forward under an exception in the law.

“Between 70-90% of the crime guns in Mexico are illegally trafficked from the U.S.,” said Jonathan Lowy, an attorney representing the Mexican government. “Essentially, Mexico’s gun problem and the problem of armed cartel violence is almost entirely a result of this crime — a gun pipeline from the U.S. gun manufacturers ultimately to the cartels.”

The Protection of Lawful Commerce in Arms Act of 2005 broadly bars lawsuits against any gun manufacturer over the illegal acts of a person using one of a manufacturer’s guns. But it does create an exception for claims involving a gun company’s alleged violation of rules governing the sale and marketing of firearms.

Mexico alleges the manufacturers have for years knowingly marketed and distributed their weapons to border community dealers who participate in illegal gun trafficking into Mexico.

“The law is clear that any person or company can be responsible for the foreseeable consequences of their actions and, in this case, of their deliberate actions,” Lowy said.

The gun companies, which declined ABC News’ request for an interview, said in court documents that the exception does not apply and the case should be dismissed, in part, because the alleged link to crimes in Mexico is too diffuse and far removed.

“Mexico’s alleged injuries all stem from the unlawful acts of foreign criminals,” the gun companies argued in their Supreme Court brief.

The court has “repeatedly held that it requires a direct connection between a defendant’s conduct and the plaintiff’s injury,” the companies claimed. “Thus, the general rule is that a company that makes or sells a lawful product is not a proximate cause of harms resulting from the independent criminal misuse of that product.”

More than 160,000 people in Mexico were killed by guns between 2015 and 2022, according to an analysis by Everytown for Gun Safety.

A large majority of guns involved in the shootings came from U.S. border states. More than 40% of illegal guns seized in Mexico over a five-year period came from Texas, according to a U.S. Government Accountability Office report.

In 2023 alone, more than 2,600 firearms were seized going south into Mexico, up 65% from the year before, according to the Department of Homeland Security, and 115,000 rounds of ammunition were captured headed the same direction, up 19% from 2022.

“In its zeal to attack the firearms industry, Mexico seeks to raze bedrock principles of American law that safeguard the whole economy,” the companies wrote in their brief. “It is the criminal who is responsible for his actions, not the company that made or sold the product.”

A federal district court dismissed Mexico’s case in 2022 citing the PLCAA protections. The 1st U.S. Circuit Court of Appeals reversed that decision in early 2024, saying Mexico had made a plausible case for liability under the law’s exception.

The Supreme Court will decide whether to affirm that judgment and allow the case to continue toward what would be a first-of-its-kind trial.

Mexico, in the meantime, announced it will expand its lawsuit after the Trump administration designated six Mexican cartels as Foreign Terrorist Organizations.

“You will also see an expansion of this lawsuit for the complicity of those who sell weapons, which are [then] introduced into our country,” Mexican President Claudia Sheinbaum told reporters last month.

In essence, Mexico will argue that American gun manufacturers aren’t just enabling ordinary gun crime but terrorism, by the U.S. government’s own characterization.

The Supreme Court is expected to deliver an opinion in the case, Smith & Wesson Brands v. Estados Unidos Mexicanos, by the end of June.

ABC News’ Matt Rivers and Patty See contributed to this report.

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